Sara Inc. paid $4 million in dividends this year. Earnings are expected to grow by 15% each year for the next 10 years and 5% thereafter. Shareholders require a return of 10%. If there are 20 million shares outstanding, what is the estimated price per share? (Hint: use the two-stage valuation Model)

1. $8.33
2. $8.59
3. $9.13
4. $9.78
5. None of the above, the answer is $_____________>